When buying a Hangar

[AR Dave]

OK luck (maybe) might be coming my way! Some of you know that my plane has been parked in a friends hanger for 5 or 6 yrs. It was built just before we moved from Alaska and my new friend invited me to keep it there. That's been wonderful to say the least. It's a big hanger, don't know the dimension but it was made for big tall planes. We had several planes in there a few years back easily. (Edit: just measured it on google earth it's 60x80) Then he sold his Saratogo and some IRS trouble started for him. He sold the hanger to a close friend of ours (who has nothing to do with airplanes). That friend just sold it to me over the phone. I almost feel guilty. Not going into details, but the new owner had a meeting with the IRS and asked them if there was any reason he couldn't sell it to me. They said that would be perfectly ok!
I'm giddy but won't believe it until I get that title (be 1.5 weeks before I get home).

Can we just go to the court house and sign the title over to me? That's what the first two did.
Or should I have a real estate lawyer close the deal?
Is there anything else I need to know about Hangers or etc.?

[Kyle Wolfe]

Alllllright - a place for a pre Petit Jean hanger party! Woohoo!

Dave, having never bought a hanger I don't know too much about the process, but I'd check with the airport too. Usually there is a lease on the land. Often that needs to be either assigned or re-negotiated with the airport.

Don't forget check out insurance too on the hanger.

[trake]

Is it a long term lease or a "fee simple" transaction? Any liens against it or delinquent taxes? If the guy has IRS liens against him they could attach to the property. You could be liable for real estate taxes. Are you getting a warranty deed like the one for your house?

[170C]

Dave, that sounds like a super deal assuming you don't pickup any of the former owners tax or other liabilities and your purchase price was one you feel good about. Having been in that hangar a time or two I remember it is really a nice one. As others mention, just be sure you are getting a clear title, aren't going to get robbed by the city/county on lease costs and be sure to protect your new purchase with proper/adequate property and casualty insurance. You will have to tell us more about the hangar once you get back and check it out.

[AR Dave]

It's a 20yr lease, with about 7 yrs used up. Then you can re-lease it for $99 /10 yrs or something.
I'll pay .10 cents a foot to the airport per yr, $480.
I'll pay property tax to the city.

Forgot about the insurance -

OK, with that information - let me ask this - how much could I resale it for?
On the Conservative side? $20K or $30? It was built for about $45.
I have no ideal what it's worth with the lease running out.
Oh it has a restroom, Traci and I tiled.

[AR Dave]

Kyle the kids and I are already thinking of Volleyball Courts, Batting Cages, and weekly Shindigs!
The Airport Manager will probably start counting the days until my 20 yrs are done.
But we'll party until then!

Party Hanger

[GAHorn]

Confirm that the airport has no rules against re-leasing/sub-leasing. You can probably lease space in that hangar to others and make more than selling it.

If you do, be certain to make any lessees name you as "additional named insured" on their aircraft insurance (which you will require they keep.)

And.... make certain that the seller guarantees title to you..... they promise to do everything possible to perfect the sale, and they retain all liabilities for past use. (If the ground is contaminated due to paint strippers, chemical spills, etc., then you want to be held-harmless.) In short, If you are making such a good deal on this .... then you can afford an attorney's fees to protect yourself. HIre one to take care of the transaction. IMHO.